Milton Olupot and Mary Karugaba
12 November 2009
Kampala — THE foreign affairs ministry still owes sh4.4b to various service providers for the CHOGM summit, the Permanent Secretary, James Mugume, said yesterday.
He told the public accounts committee which is probing the CHOGM expenditure that by the close of CHOGM activities, the outstanding arrears stood at sh5.5b but the ministry has so far settled claims of sh1.1b.
Mugume explained that the arrears arose as a result of "unforeseen activities". He, however, did not name the activities. The sh5.5b is in excess of the approved budget for the ministry.
The committee chaired by Nandala Mafabi (FDC) lashed out at the permanent secretary for allowing the additional expenditure without the approval of Parliament.
Mugume argued that he had instructions from the national taskforce and the Cabinet sub-committee to spend the money.
When pressed to show written evidence that he advised the Cabinet sub-committee on the rules guiding public expenditure, Mugume said he was bound by the directives of the sub-committee.
This angered the MPs who asked whether the sub-committee and the national taskforce had authority superior to that of Parliament. "Didn't you know that you were bound by regulations as an accounting officer?" Albert Oduman (FDC) asked.
"Authority on extra expenditure for activities is supposed to be approved by Parliament," Mafabi added. "You have committed a crime for spending without authority. You will get a penalty because you never checked the decisions that were against the law."
Mafabi said it was up to the permanent secretary to prove that he was forced to spend the unauthorised money, else he would have to pay it back. Mugume promised that he would furnish the committee with evidence that he played his advisory role as the Permanent Secretary.
The committee observed that the total CHOGM expenditure had shot up from the initially budgeted sh270b to sh370 stated by the Auditor General and now close to sh400b.
Theodore Sekikubo (NRM) said Parliament should not approve the additional funds and that Foreign Affairs should halt any payments to the suppliers. "It is an abuse. This money was recklessly and excitedly spent," he said.
The committee also heard that all the 30 executive BMW vehicles had already developed defects, and one of them was involved in an accident. The committee observed that the car deal was bad from the beginning with diesel cars being fitted with petrol engines.
Tom Kazibwe said the cars could not last because their systems were designed for diesel but had been changed to use petrol.
Peter Mutuluza (NRM) said there should be a thorough investigation into the procurement process of the cars.
Mugume with a team of about 10 ministry officials was also grilled over the distribution of the CHOGM furniture to Government ministries and private hotels.
The committee heard that the furniture procured by the Government for CHOGM was distributed to State House, Civil Aviation Authority, Foreign Affairs and the Ministry for Security, while some was left in Serena and at the Commonwealth Resort Munyonyo.
Mugume explained that the furniture in the hotels was still owned by the Government and is used whenever there are big events.
He also explained that it was a Government policy to retain the property.
The committee was, however, not convinced and demanded that the CID attached to the committee investigates whether the assets still exist, whether there are individuals who are collecting rent from or could have sold them off.
The MPs alleged that some individuals in the ministry could have shared the furniture after Mugume failed to account for the old furniture.
"We shall take it that they were sold underground. How do you donate government furniture to hotels? They are depreciating because they are being used everyday. Why couldn't you also leave the BMWs to the drivers who used them?" Kazibwe asked angrily.
Margaret Oteng wondered why the Government had to furnish a five-star hotel. These five star hotels are supposed to have these facilities. It is not the duty of the Government to furnish them," she said demanding that the hotels pay for the two years they have been using the furniture or else be forced to buy the items.
Mugume opposed the proposal that the items be withdrawn from the hotels and transferred to the Government stores.
He said the Government stores were phased out and there was nowhere to keep the property.
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